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A Rundown of Cal-Maine Foods' 2nd-Quarter Results

Specialty eggs made up roughly 40% of quarterly egg sales revenue

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Jan 06, 2021
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On Jan. 5 after the market closed, Cal-Maine Foods Inc. (

CALM, Financial), the U.S.'s largest egg producer, released earnings results for its second quarter of fiscal 2021. The company beat earnings and revenue projections.

Key highlights

Cal-Maine reported diluted earnings per share of $0.25 in the second quarter, which reflected a growth from a loss per share of 21 cents recorded in the prior-year quarter. Revenue of $347.3 million was up 11.5% on a year-over-year basis. Analysts had predicted a loss of 8 cents per share on $333.5 million in revenue.

Reflecting on the latest quarter, Chairman and CEO Dolph Baker said:

"Market prices for eggs rose steadily in the early part of the second quarter and then leveled off for the remainder of the period. For example, the Urner-Barry Southeastern Regional Large Price ('UB southeastern large index') for conventional eggs for the second quarter of 2021 was $1.21 per dozen, up 3.5 percent compared to $1.17 for the second quarter of fiscal 2020, and our average sales price was up 5.8 percent compared with the prior-year second quarter."

For the quarter, the company sold 273.7 million dozen eggs, which was more than the prior-year quarter. Additionally, the net average selling price was up from the prior-year period at $1.227 per dozen. Baker summarized the key points of the results:

"For the second quarter of fiscal 2021, sales of specialty eggs totaled $134.1 million, accounting for 39.7 percent of our egg sales revenue, compared with $115.9 million, or 38.2 percent of egg sales revenue, in the second quarter of fiscal 2020. The higher specialty egg revenue reflects a 17.7 percent increase in specialty dozens sold. Demand for specialty eggs was positively affected by the higher conventional egg prices as compared to the same period in the prior year."

Looking ahead

Baker said that the company would continue to implement its "growth strategy" in fiscal 2021 in spite of challenges posed by the Coronavirus pandemic. The growth strategy comprises of providing a favorable product mix, investing in operations and discovering acquisitions and other growth opportunities that would augment its production:

"We have a strong balance sheet with the financial flexibility to support our growth initiatives and we look forward to the opportunities ahead for Cal-Maine Foods."

Due to the supply chain disruptions as well as the uncertainties associated with the recent restructuring of U.S. trade agreements with several countries, price volatility is expected throughout the fiscal year. The company did not issue any guidance figures for earnings and revenue.

Disclosure: I do not hold any positions in the stocks mentioned.

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